A long time ago I had a girlfriend who was upset with me after Christmas because she was “certain” that I was going to propose to her on that day. I made sure to take care of that by breaking up with her a month later. But that is a story for another day.
What I did learn was that Christmas is a popular holiday when men do propose. Other popular holidays include New Years Eve and Valentine’s Day.
But let’s say you are going to propose this Christmas. I’m sure you are setting the stage right now on how you are going to propose. You probably are working out what you are going to say and have the exact place in mind.
I’m also sure you spent a few thousand dollars on the engagement ring. According to The Knot’s 2015 Jewelry and Engagement Study the average cost of an engagement ring is $5,978. That is a lot of money. By way of comparison, that is 4.2 months worth of rent for a studio apartment in New Jersey.
Given your extensive planning have you thought about what happens if you lose the ring or it mysteriously disappears?
Check out this video of a guy who proposed to his girlfriend on a lake and she accidently knocked it out of his hand.
At 11:17 in the video this one You Tuber lost her engagement ring and has no idea how she lost it.
So how do you best protect yourself?
The bad news is a regular homeowners and renters policy doesn’t provide coverage for accidental loss (the guy who lost the ring in the lake) or mysterious disappearance (the You Tuber who doesn’t know how she lost her ring).
The good news is you can get an endorsement to your insurance policy to provide coverage for these exact situations. Call your agent or insurance company and they will instruct you on what you need to do.
I strongly recommend is that you go to a certified Gemologist to obtain an appraisal of the ring. Check out the American Gem Society’s website to find a local gemologist near you.
Jewelry changes in value over time. If you have a family heirloom that you are proposing with, an appraisal will establish a fair market value. Also the appraisal will give a detailed description of the ring and include photos for the record.
When you have an appraisal, the insurance company will give you that exact amount if you lose the ring.
It may be tempting to just use the receipt from the retail store where you bought the ring. Keep in mind that each retailer has his own profit margin. You could pay $5,000 at one store and another store could charge $4,500 for the same ring. If an insurance company allows you to use a receipt they have the option of replacing the ring at a lower cost than what you insured it for. They don’t have that option if you use an appraisal for the ring. Therefore, the appraisal is the better option.
So make your plans to propose this Christmas. Be bold. Be memorable. But get the right protection in place in case something unexpected happens!